When subsection (11) applies

(10)

Subsection (11) applies when an employer to whom section RD 22(2B) (Returns for amounts of tax paid to Commissioner) and section 46(1) of the Tax Administration Act 1994 apply—

(a)

has made an election under section RD 7B (Treatment of certain benefits under employee share agreements) to withhold and pay an amount of tax in relation to a benefit received by an employee under subsection (2) or (4); or

(b)

is required to furnish an employer monthly schedule under section 46(6B) of that Act in relation to a benefit received by an employee under subsection (2) or (4).

Deferral of income recognition

(11)

The employee is treated as deriving employment income in relation to the benefit in the pay period following the period in which they receive the benefit.

(2)

In section CE 2, in the list of defined terms, insert “amount of tax”, “employment income”, and “pay period”.

(3)

Subsection (1) applies for the 2017–18 and later income years.

9 Section CX 55 amended (Proceeds from disposal of investment shares)

(1)

In section CX 55(3)﻿(b)﻿(ii), replace “is included in an approved index under the ASX Market Rules made under Chapter 7 of the Corporations Act 2001 (Aust)” with “is included on the official list of ASX Limited, a market licensee under Chapter 7 of the Corporations Act 2001 (Aust)”.

35 Section EW 15E amended (Determination alternatives)

(i)

all companies in the group notify the Commissioner that they choose Determination G9C or G14B on or before the 63rd day after the person entered into the financial arrangement, or a later time as the Commissioner allows; and

(2)

In section EW 15E, in the list of defined terms, insert “Commissioner” and “notify”.

36 Section EW 26 (Change of spreading method)

(1)

In section EW 26(1), replace “the Commissioner has given written authorisation for the change” with “the Commissioner has authorised the change and notified the person of the authorisation”.

37 Section EW 33B amended (Foreign ASAPs: designated FX hedges)

(b)

the person notifies the Commissioner that they have made an irrevocable election to apply this section to all financial arrangements for property and services described in paragraph (a)﻿(i) and (ii), at the time of—

(i)

filing a return of income for the income year in which they enter into the financial arrangement; or

(ii)

filing a return of income for an earlier income year; and

(2)

In section EW 33B, in the list of defined terms, insert “Commissioner” and “notify”.

In section EX 31(2)﻿(c), replace “have shares included in an index that is an approved index under the ASX Operating Rules” with “be included on the official list of ASX Limited, a market licensee under Chapter 7 of the Corporations Act 2001 (Aust)”.

(ab)

for a benefit referred to in subsection (1)﻿(d), the pay period in which the employee is treated as deriving the benefit under section CE 2(11) (Value and timing of benefits under share purchase agreements); or

56 Section RD 7 amended (Extra pay)

(bb)

includes a benefit under section CE 2(2) or (4) (Value and timing of benefits under share purchase agreements) in relation to which the employer has made an election under section RD 7B to withhold an amount of tax; and

(2)

In section RD 7, in the list of defined terms, insert “amount of tax”.

(3)

Subsection (1)—

(a)

applies for the 2017–18 and later income years:

(b)

for an employer who has a share purchase agreement that applies for a class of their employees and who has treated a benefit under section CE 2(2) or (4) as a PAYE income payment in the period from 1 April 2008 to 31 March 2017, is treated as if it applied for the employer from 1 April 2008.

RD 7B Treatment of certain benefits under employee share agreements

When this section applies

(a)

an employer has a share purchase agreement that applies for a class of their employees; and

(b)

the employee who is a member of the class receives a benefit described in section CE 2(2) or (4) (Value and timing of benefits under share purchase agreements) in relation to the agreement.

What this section does not apply to

(2)

This section does not apply to a benefit arising under a share purchase scheme approved by the Commissioner on meeting the criteria set out in sections DC 13 and DC 14 (which relate to loans to employees under share purchase schemes).

Withholding amounts of tax

(3)

The employer may choose, in relation to the share purchase agreement, to withhold and pay an amount of tax for the benefit. The employer makes the election by—

(a)

calculating the amount of tax that must be withheld and paying the amount to the Commissioner as described in section RD 4(1); and

(b)

including the amount of the benefit in their employer monthly schedule under section RD 22(1); and

(c)

making the disclosure referred to in paragraph (b) within the time required under section RD 6(3)﻿(ab).

(a)

applies for the 2017–18 and later income years:

(b)

for an employer who has a share purchase agreement that applies for a class of their employees and who has treated a benefit under section CE 2(2) or (4) as a PAYE income payment in the period from 1 April 2008 to 31 March 2017, is treated as if it applied for the employer from 1 April 2008.

YA 4 General rules for giving information or communicating matters

General rules

(1)

Sections 14 to 14G of the Tax Administration Act 1994 apply for the purposes of this Act, unless the context requires otherwise, when a person gives information to, or communicates with, another person by—

(a)

asking or requesting:

(b)

informing:

(c)

applying:

(d)

notifying:

(e)

formally notifying.

Overriding provisions

(2)

Section 14E of that Act sets out the ways in which specific provisions may override the general rules.

Delivery

(3)

Sections 14F and 14G of that Act set out the options available for communicating by personal delivery, post, fax, or electronic means.

For the purposes of sections CZ 23 to CZ 25, CZ 29, DZ 20, EZ 23B, EZ 23BB, EZ 70 to EZ 74, FZ 7, and GZ 3 (which relate to the Canterbury earthquakes), the terms Canterbury earthquake, greater Christchurch, rebuilding, and recovery have the meanings set out in the Canterbury Earthquake Recovery Act 2011, which continues to apply for this purpose in the same manner as it applied immediately before the repeal of that Act by the Greater Christchurch Regeneration Act 2016.

74 Income Tax Act 2007: insertion of items in lists of defined terms

The words listed in column 1 of the schedule are inserted, in the appropriate alphabetical order, in the lists of defined terms of the sections of the Income Tax Act 2007 listed in column 2.

Part 2 Amendments to Tax Administration Act 1994

75 Tax Administration Act 1994 amended

76 Section 3 amended (Interpretation)

accepted software package means a computer program or group of computer programs that is used for business, accounting, tax, or other purposes and is accepted by the Commissioner for use in communicating information to the Commissioner and receiving information from the Commissioner

(3)

Insert, in appropriate alphabetical order:

apply, for a mode of communication, has the meaning set out in section 14C

ask, for a mode of communication, has the meaning set out in section 14B

(4)

Repeal the definition of authorised savings institution.

(5)

In the definition of Commissioner’s official opinion, paragraph (a), —

(a)

in subparagraph (i), replace “, given by the Commissioner, either orally or in writing,” with “communicated by the Commissioner”:

(b)

in subparagraph (ii), replace “, in writing” with “notifying the taxpayer”.

(6)

Insert, in appropriate alphabetical order:

inform, for a mode of communication, has the meaning set out in section 14B

(7)

Replace the definition of notice with:

notice, for an item of information, means the form or manner in which the item is notified or communicated, as described in section 14C or 14D, as appropriate

(8)

Insert, in appropriate alphabetical order:

notify—

(a)

means to give notice; and

(b)

for a mode of communication, has the meaning set out in section 14C or 14D, as appropriate

request, for a mode of communication, has the meaning set out in section 14B

(9)

Replace the definition of responsible department with:

responsible department—

(a)

in sections 81(4)﻿(f) and (o), 82, and 85, means—

(i)

in relation to a benefit that is not a student allowance, the department for the time being responsible for the administration of the Social Security Act 1964:

(ii)

in relation to a student allowance, the department for the time being responsible for the administration of Part 25 of the Education Act 1989:

(b)

in sections 24F and 24IB, means the department for the time being responsible for the administration of the Social Security Act 1964

(10)

In the definition of special tax code certificate, replace “section 24F” with “section 24F(1B)﻿(b)”.

(11)

Insert, in appropriate alphabetical order:

special tax code notification means a special tax code notification under section 24IB

(12)

In the definition of tax return, paragraph (a), delete “, whether in electronic or written form and”.

(13)

Repeal the definition of withdrawal tax.

77 Section 13 amended (Proof of signature of Commissioner)

(1)

In section 13(1), replace “stamped or printed signature” with “printed or electronic signature”.

13B Use of electronic signatures for tax administration purposes

(1)

Subject to meeting the criteria and requirements set out in the guidelines referred to in subsection (2) and the provisions of the Electronic Transactions Act 2002, a person may give information to the Commissioner under an electronic signature.

(2)

The Commissioner must publish guidelines that set out the criteria and technical requirements for—

(a)

the use of a valid electronic signature on documents provided to the Commissioner:

(b)

the nature of, and circumstances in which, the Commissioner accepts information under an electronic signature.

(3)

When the Commissioner receives a document bearing the electronic signature of a person, unless there are reasonable grounds to suppose otherwise,—

(a)

the document is treated as signed by the person; and

(b)

the person is treated as complying with both the guidelines referred to in subsection (2) and section 24 of the Electronic Transactions Act 2002.

79 Sections 14, 14B, and 14C replaced

14 Modes of communication: general provisions

(1)

Sections 14B to 14E apply for the purposes of this Act, the Income Tax Act 2007, and the Goods and Services Tax Act 1985, unless the context requires otherwise, to set out what is meant when a person (person A) gives information to, or communicates with, another person (person B) by—

(a)

asking or requesting:

(b)

informing:

(c)

applying:

(d)

notifying:

(e)

formally notifying.

(2)

Sections 14F and 14G set out the requirements for giving information or communicating by personal delivery, post, fax, or electronic means.

(3)

Despite sections 6, 14B(2)﻿(c), and 14C(2)﻿(a), and sections 16 and 20 of the Electronic Transactions Act 2002, when there are reasonable grounds to suppose an electronic communication will be received by a person, the consent of the person is not required in order for the Commissioner to communicate in electronic form.

(4)

Despite subsection (1), sections 14C to 14G apply when any other Act requires the Commissioner to give notice to a person, or a person to give notice to the Commissioner.

14B Asking, requesting, or informing

(1)

This section applies when a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 refers to or describes person A—

(a)

asking person B for something:

(b)

requesting something from person B:

(c)

informing person B about something.

(2)

Person A may communicate—

(a)

by telephone; or

(b)

orally in person in a manner acceptable to the Commissioner; or

(c)

by electronic means, if person A complies with the provisions of the Electronic Transactions Act 2002, for an item of information delivered in a way referred to in section 14F; or

(d)

in print and delivered in a way referred to in section 14F, whether the document is handwritten, typewritten, or otherwise visibly represented, and whether copied or reproduced on paper; or

(e)

in another manner permitted by the Commissioner.

(3)

However, communication under this section does not include communication on the internet or by other electronic means, if person B is not directly alerted to the communication in some manner.

(4)

Section 14E may apply to override the application of this section.

14C Applying or notifying

(1)

This section applies when a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 refers to or describes person A—

(a)

applying to person B for something:

(b)

notifying person B about something.

(2)

Person A may communicate—

(a)

by electronic means, if person A complies with the provisions of the Electronic Transactions Act 2002, for an item of information delivered in a way referred to in section 14F; or

(b)

in print and delivered in a way referred to in section 14F, whether the document is handwritten, typewritten, or otherwise visibly represented, and whether copied or reproduced on paper; or

(c)

in another manner permitted by the Commissioner.

(3)

However, communication under this section does not include communication on the internet or by other electronic means, if person B is not directly alerted to the communication in some manner.

(4)

Section 14E may apply to override the application of this section.

14D Formally notifying

(1)

If a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 refers to or describes person A formally notifying person B, person A may communicate only in print, delivered personally or by registered post, whether the document is typewritten, or otherwise visibly represented, and whether copied or reproduced on paper.

(2)

However, communication under this section does not include communication by email, the internet, or other electronic means.

(3)

Section 14E may apply to override the application of this section.

14E Overriding provisions

(1)

A specific provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 may apply to override the application of sections 14B to 14D by—

(a)

specifying the way in which a person gives information or communicates a matter:

(b)

prescribing the manner, form, or format for giving information or communicating a matter:

(c)

providing for the Commissioner to prescribe the manner, form, or format for giving information or communicating a matter.

(2)

Sections 14B to 14D apply to a provision in the Acts referred to in subsection (1) that relates to or implements a double tax agreement or other agreement described in section BH 1 of the Income Tax Act 2007 only to the extent to which they are not inconsistent with the application of the agreement.

This section applies when a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 requires person A to deliver information to person B.

(2)

When the Commissioner is person A, the Commissioner may communicate with person B—

(a)

if person B is not a corporate body,—

(i)

by personal delivery to person B; or

(ii)

by personal delivery to person B’s usual or last known place of residence; or

(b)

if person B is a corporate body, by personal delivery to person B’s office during working hours; or

(c)

by delivery to person B’s contact address as described in section 14G.

(3)

When the Commissioner is person B, person A may communicate with the Commissioner—

(a)

by electronic means if, in delivering the communication, person A complies with the Electronic Transactions Act 2002; or

(b)

by fax, to a fax number that has been provided by the Commissioner; or

(c)

by personal delivery during working hours to an office of the department that is available to accept communication of the information; or

(d)

by post—

(i)

to the street address of an office of the department; or

(ii)

to the post office box number of the department.

(4)

When the Commissioner is neither person A nor person B, person A may communicate with person B—

(a)

if person B is not a corporate body, by personal delivery to person B; or

(b)

if person B is a corporate body, by personal delivery to person B’s office during working hours; or

(c)

by delivery to person B’s contact address as described in section 14G.

(5)

For the purposes of subsection (2), the Commissioner may communicate with—

(a)

the person; or

(b)

a representative authorised to act on behalf of the person in relation to the relevant matter.

(6)

A communication by post is treated as having been given at the time the communication would have been delivered in the ordinary course of the post.

(7)

Section 11 of the Electronic Transactions Act 2002 applies to determine the time of receipt of an electronic communication.

(8)

For the purposes of this section and section 14G, delivery by electronic means does not include a communication to a fax number.

14G Contact addresses

For the purposes of section 14F(2) and (4), a person’s contact address may be 1 of the following:

(a)

for delivery by electronic means to a person who is not a corporate body,—

(i)

an email or other electronic address that they have provided:

(ii)

their last known email or other electronic address:

(iii)

an email or other electronic address of the person that is otherwise available, if there are reasonable grounds to suppose that the person will receive the communication:

(b)

for delivery by electronic means to a person who is a corporate body,—

(i)

an email or other electronic address of the corporate body provided by a person acting for or on behalf of the corporate body in relation to the relevant matter:

(ii)

the last known email or other electronic address of a person acting for or on behalf of the corporate body in relation to the relevant matter:

(iii)

an email or other electronic address of the corporate body that is otherwise available, if there are reasonable grounds to suppose that a person acting for or on behalf of the corporate body in relation to the relevant matter will receive the communication:

(c)

for delivery by post,—

(i)

the street address of their usual or last known place of residence; or

(ii)

the street address of any of their usual or last known places of business; or

(iii)

any other address of the person, if they have notified the Commissioner that they accept delivery at the address:

(d)

for delivery by fax, a fax number that has been provided or is otherwise available.

89 Section 24F amended (Special tax code certificates)

When applying for a special tax code, an employee must ask the Commissioner for the special tax code to apply to either—

(a)

their New Zealand superannuation income or veteran’s pension income; or

(b)

their other employment income from 1 or more employers.

(3)

In section 24F(1), replace “The Commissioner may provide an employee with a special tax code certificate” with “After an application is received under subsection (1A), the Commissioner may issue a special tax code for an employee”.

When a special tax code is issued for an employee under subsection (1), the Commissioner must—

(a)

notify the responsible department under section 24IB, if the employee asks under subsection (1AB)﻿(a) for the special tax code to apply to their New Zealand superannuation income or veteran’s pension income; or

(b)

give the employee a special tax code certificate that includes the information required under section 24F(2) and (3), if the employee asks under subsection (1AB)﻿(b) for the special tax code to apply to their other employment income from 1 or more employers.

When an employee provides a special tax code certificate to their employer or the Commissioner provides a special tax code notification to the responsible department, the provisions of the certificate or notification override anything in this Act and the Income Tax Act 2007 other than—

(a)

the employee’s duties under sections RA 8, RA 10, and RD 4(2) of the Income Tax Act 2007; and

(b)

subsection (6) and sections 24G and 24H.

(9)

In section 24F(5), replace “a tax code for a special tax code certificate” with “a special tax code”.

92 New section 24IB inserted (Special tax code notification)

24IB Special tax code notification

(a)

an employee asks under section 24F(1AB)﻿(a) for a special tax code to apply to their New Zealand Superannuation income or veteran’s pension income; and

(b)

the Commissioner issues a special tax code for the employee under section 24F(1).

(2)

The Commissioner must provide as soon as practicable a special tax code notification that includes the information required under section 24F(2) and (3) to an officer, employee, or agent of the responsible department whom the chief executive of the department authorises to receive the information.

(3)

Subject to section 24F(4), the responsible department must apply the special tax code notification in relation to a PAYE income payment of New Zealand superannuation income or veteran’s pension (a payment) made to the employee after the date the notification is provided to the responsible department.

(4)

If the special tax code notification is provided to the responsible department after the next payment has been calculated, the department must use the notification in relation to a payment that follows the next payment.

93 Section 25 amended (RWT withholding certificates)

(1)

In section 25(3), replace “request, by notice, the payer” with “notify the payer that they are required”.

In section 25(7), after paragraph (b), replace “requested, by notice, by the recipient of the interest for such a certificate” with “notified by the recipient of the interest that they require such a certificate”.

(a)

(b)

94 Section 26 amended (Records to be kept for RWT purposes)

95 Section 27 amended (Provision of tax file numbers)

(1)

In section 27(1), replace “shall, within 10 working days of receiving a request, by notice, from the payer, provide the payer with the recipient’s tax file number” with “must, if notified by the payer, provide their tax file number to the payer within 10 working days of receiving the notice”.

(2)

In section 27(2), after paragraph (b), replace “shall, within 10 working days of receiving a request, by notice, from the exempt person, provide the exempt person with the non-exempt person’s tax file number” with “must, if notified by the exempt person, provide their tax file number to the exempt person within 10 working days of receiving the notice”.

96 Section 28 amended (Recipient of resident passive income to provide tax file number when RWT not withheld)

101 Section 32A amended (Records to be provided by employer who contributes to superannuation fund)

A person who receives an application under subsection (1) must provide the information, to the extent it is held or can be accessed, no later than 20 working days after the date on which the application is made.

114 Section 46 amended (Employers to make returns as to employees)

(a)

includes a benefit that an employee receives under section CE 2(2) or (4) of the Income Tax Act 2007 in relation to which the employer has not made an election under section RD 7B of that Act to withhold an amount of income tax:

(b)

does not include—

(i)

a benefit under a share purchase agreement received by a former employee:

(ii)

a benefit arising under a share purchase scheme approved by the Commissioner on meeting the criteria set out in sections DC 13 and DC 14 of that Act.

(c)

(ec)

communicating to a person who is an officer or employee of the Ministry of Business, Innovation and Employment, WorkSafe New Zealand, or an agency designated under section 28B of the Health and Safety in Employment Act 1992, information that—

(i)

the person is authorised by the Ministry, WorkSafe New Zealand, or agency, as applicable, to receive under workplace legislation; and

(ii)

the Commissioner considers is not undesirable to disclose and is reasonably necessary to enable the person to carry out a function, duty, or power conferred on the person under or in relation to workplace legislation:

127 Section 87 amended (Further secrecy requirements)

(ab)

being a person, other than an Inland Revenue officer, who is employed by, or provides services to, a government agency and is required by the agency to perform their duties in a place, and with facilities, shared with Inland Revenue officers who are expected by the Commissioner to perform their duties in the place and with the facilities; or

164 Section 136 amended (When objection may be referred directly to High Court)

In section 136(14), replace “agreed to in writing by or on behalf of the objector and the Commissioner” with “agreed to by or on behalf of the objector and the Commissioner, with the agreement recorded in a document”.

165 Section 137 amended (Test case procedure)

The Commissioner may serve a notice under subsections (3) and (7) by formally notifying either the objector or a solicitor who is authorised to accept service on their behalf at the contact address referred to in section 14G(c) or by effective delivery to an address supplied by the objector.

167 Section 138R amended (Stay of proceedings for similar cases)

The Commissioner may give notices required by this section by formally notifying either the disputant or a solicitor who is authorised to accept service on their behalf at the contact address referred to in section 14G(c) or by effective delivery to an address supplied by the disputant.

The Commissioner must provide a copy of a notice given to a person under subsection (1) or (4) to the affected taxpayer, and the copy must be provided at the time the notice is given.

(5B)

Despite subsection (5), for a notice relating to an amount of wages or salary described in subsection (3), the Commissioner may dispense with the requirement to send a copy of the notice to the affected taxpayer if, after making reasonable inquiries, the Commissioner has, or can find, no valid address for the affected taxpayer.

173 Section 159 amended (Procedure in District Court where defendant absent from New Zealand)

In section 159, replace “be effected by posting a duplicate or sealed copy of the notice of claim in a letter addressed to the defendant at the defendant’s present or last known place of abode or business, whether in New Zealand or elsewhere” with “be effected by delivery of a duplicate or sealed copy of the notice of claim to the defendant in a way described in section 14F(2)”.

For the purposes of subsection (1), the term Canterbury earthquake has the meaning set out in the Canterbury Earthquake Recovery Act 2011, which continues to apply for this purpose in the same manner as it applied immediately before the repeal of that Act by the Greater Christchurch Regeneration Act 2016.

178 Section 183H amended (Remission on application)

(1)

In section 183H(a), before subparagraph (i), replace “make a written request” with “apply”.

The Commissioner must provide a copy of a notice that is given in relation to any unpaid tax to a person under subsection (2) or (4) to the registered person, and the copy must be provided at the time the notice is given.

(5B)

Despite subsection (5), for a notice relating to an amount of wages or salary described in subsection (3), the Commissioner may dispense with the requirement to send a copy of the notice to the registered person if, after making reasonable inquiries, the Commissioner has, or can find, no valid address for the registered person.

(4)

In section 43(6), replace “a statement in writing” with “notification”.

191 Section 51 amended (Persons making supplies in course of taxable activity to be registered)

75B General rules for giving information or communicating matters

(1)

Sections 14 to 14G of the Tax Administration Act 1994 apply for the purposes of this Act, unless the context requires otherwise, when a person gives information to, or communicates with, another person by—

(a)

asking or requesting:

(b)

informing:

(c)

applying:

(d)

notifying:

(e)

formally notifying.

(2)

Section 14E of that Act describes the ways in which specific provisions may override the general rules.

(3)

Sections 14F and 14G of that Act set out the options available for communicating by personal delivery, post, fax, or electronic means.

203 Section 78A amended (Returns to be furnished in 2 parts for taxable period in which change in rate of tax occurs)

Amendments to KiwiSaver Act 2006

208 KiwiSaver Act 2006 amended

209 Section 4 amended (Interpretation)

(1)

In section 4(1), in the definition of salary or wages, after paragraph (a)﻿(v), insert:

(vi)

the amount of a benefit that an employee receives under section CE 2(2) or (4) of the Income Tax Act 2007 under a share purchase agreement when the amount is treated as an amount of extra pay of the employee:

(2)

Subsection (1)—

(a)

applies for the 2017–18 and later income years:

(b)

for an employer who has a share purchase agreement that applies for a class of their employees and who has treated a benefit under section CE 2(2) or (4) as a PAYE income payment in the period from 1 April 2008 to 31 March 2017, is treated as if it applied for the employer from 1 April 2008.

215 New section 59CB inserted (Confirmed back-dated validation for those under 18 years at time of enrolment or opt-in)

59CB Confirmed back-dated validation for those under 18 years at time of enrolment or opt-in

(1)

This section applies when—

(a)

the automatic enrolment rules were applied to a person because of the mistake described in section 59A(b)﻿(ii):

(b)

the opt-in rule in section 34 was applied to a person because of the mistake described in section 59A(d).

(2)

This section does not apply to—

(a)

a person aged 16 years or under if all guardians of the person have contracted directly with a provider in the person’s name:

(b)

a person aged 16 years or over but less than 18 years if the person and a guardian of the person have contracted directly with a provider:

(c)

a person aged 18 years who—

(i)

has contracted directly with a provider:

(ii)

has opted in under section 34:

(iii)

has chosen an investment product in a default KiwiSaver scheme or transferred their funds under section 55 to another scheme.

(3)

The person may,—

(a)

if they are aged 15 years or under, opt out with consent from a guardian:

(b)

if they are aged 16 years or over but less than 19 years, opt out.

(4)

The person opts out under subsection (3) by notifying the Commissioner.

(5)

If the person opts out under subsection (3), the Commissioner must notify the provider and the person’s employer.

(6)

The person’s employer must stop making deductions from the person’s salary or wages, with effect on the next payment of salary or wages that the employer calculates after the date on which the employer receives the notice referred to in subsection (5).

(7)

The employer may refund any deduction to the person, rather than pay it to the Commissioner.

(8)

If the person does not opt out under subsection (3) before the day on which they reach the age of 19 years, the person is treated as a person—

(a)

in relation to whom no mistake described in section 59A(b)﻿(ii) or 59A(d) was made; and

(b)

who, at the time, met the requirements of the automatic enrolment rules or the age requirement for the application of the opt-in rule in section 34.

(9)

If the person does not opt out under subsection (3), the relevant provider does not pay the member’s accumulation for the person to the Commissioner.

A social security beneficiary who is required under subsection (2) to apply for a formula assessment of child support in relation to a parent of the child, must make the application—

(a)

at the same time as an application for social security benefit is made:

(b)

at a time other than when an application for social security benefit is made, when notified by the Commissioner that an application for a formula assessment is required in relation to the qualifying child.

A social security beneficiary is not required to apply for a formula assessment in relation to a parent of the child if the chief executive of the department for the time being responsible for the administration of the Social Security Act 1964 is satisfied that—

(a)

there is insufficient evidence available to establish who in law that parent is:

(b)

if the beneficiary made an application for a formula assessment of child support or took steps to make an application for a formula assessment of child support in relation to that parent, there would be a risk of violence—

(i)

to the beneficiary:

(ii)

if the beneficiary is a sole parent, to any of the beneficiary’s children:

(iii)

if the beneficiary is in receipt of an unsupported child’s benefit, to the beneficiary’s partner, the beneficiary’s children, the qualifying child, a parent of the qualifying child, or a sibling of the qualifying child:

(c)

that parent died before the application for social security benefit was made:

(d)

the child was conceived as a result of incest or sexual violation:

(e)

the beneficiary cannot make an application for a formula assessment of child support in relation to that parent because of a compelling circumstance, other than a circumstance mentioned elsewhere in this subsection.

Unless subsection (6B) applies, a social security beneficiary who does not comply with their obligations under this section, and who is described in section 70A(1)﻿(a) and (b) of the Social Security Act 1964, is liable to have their rate of benefit reduced under that section.

(6B)

A social security beneficiary who does not apply for a formula assessment of child support in relation to a parent of a qualifying child when required by this section, and who is described in section 70A(1)﻿(a) and (b) of the Social Security Act 1964, is not liable to have their rate of benefit reduced under that section if the chief executive of the department for the time being responsible for the administration of that Act is satisfied that the beneficiary is taking active steps to identify who in law that parent is.

(5)

In section 9(7), after “beneficiary”, insert “who is described in section 70A(1)﻿(a) and (b) of that Act”.

222 Section 156 amended (Copy of deduction notice to be given to liable person)

Despite subsection (1), for a notice relating to an amount of wages or salary of the liable person, the Commissioner may dispense with the requirement to send a copy of the notice to the liable person if, after making reasonable inquiries, the Commissioner has, or can find, no valid address for the liable person.

Amendments to Student Loan Scheme Act 2011

223 Student Loan Scheme Act 2011 amended

Despite subsection (1)﻿(b), the Commissioner may dispense with the requirement to send the information described in subsection (1)﻿(b)﻿(i) to (iii) to the borrower if the Commissioner, after making reasonable inquiries, has, or can find, no valid address for the borrower.

Amendment to Gaming Duties Act 1971

Despite subsection (2), for a notice relating to an amount of wages or salary described in subsection (4), the Commissioner may dispense with the requirement to send a copy of the notice to the defaulter if, after making reasonable inquiries, the Commissioner has, or can find, no valid address for the defaulter.

Amendment to Accident Compensation Act 2001

227 Accident Compensation Act 2001 amended

228 Section 11 amended (Earnings as an employee: what it does not include)

(cb)

any benefit arising from a share purchase agreement under section CE 2(2) or (4) of the Income Tax Act 2007 when the employer makes an election under section RD 7B of that Act to withhold and pay tax in relation to the benefit; or

(2)

Subsection (1)—

(a)

applies for the 2017–18 and later income years:

(b)

for an employer who has a share purchase agreement that applies for a class of their employees and who has treated a benefit under section CE 2(2) or (4) as a PAYE income payment in the period from 1 April 2008 to 31 March 2017, is treated as if it applied for the employer from 1 April 2008.

229 Section 15 amended (Earnings as a shareholder-employee)

For the purposes of this section, earnings as a shareholder-employee do not include a benefit arising under section CE 2(2) or (4) of the Income Tax Act 2007 in relation to which an employer has made an election under section RD 7B to withhold an amount of tax.

(2)

Subsection (1)—

(a)

applies for the 2017–18 and later income years:

(b)

for an employer who has a share purchase agreement that applies for a class of their employees and who has treated a benefit under section CE 2(2) or (4) as a PAYE income payment in the period from 1 April 2008 to 31 March 2017, is treated as if it applied for the employer from 1 April 2008.

Schedule Income Tax Act 2007: insertion of items in lists of defined terms